PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE

Transcription

1 Project Name PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Istanbul Municipal Infrastructure Project Report No.: AB2946 Region EUROPE AND CENTRAL ASIA Sector Solid waste management (50%); Disaster management (50%) Project ID P Borrower(s) REPUBLIC OF TURKEY Implementing Agency Istanbul Metropolitan Municipality Turkey Environment Category [ ] A [ ] B [ ] C [X ] FI [ ] TBD (to be determined) Date PID Prepared March 6, 2007 Date of Appraisal March 16, 2007 Authorization Date of Board Approval April 26, Country and Sector Background Istanbul, whose 2006 population is estimated at about 12.5 million, is the largest city of Turkey and its main center of industrial, financial, service and other economic activities. Administratively, it is both a metropolitan municipality and a State province and among the provinces it is the one that makes by far the single largest contribution (23%) to Turkey s GDP. Having been, over the span of almost two millennia, the successive capital of the Roman, Byzantine, and Ottoman empires it also holds a treasure of unique historical and cultural assets of World Heritage importance. An extremely rapid six-fold population increase over the past three decades largely as a result of the attraction that Istanbul s expanding labor market exerted on Turkey s internal migration - has severely taxed the capacity of the Istanbul Metropolitan Municipality (IMM) to deal with urban development problems. Decades of extremely rapid urban growth have adversely affected the living conditions of Istanbul s inhabitants and exacted a high toll from the city s economy and natural environment. Demand for basic services such as water and sewerage, electricity and natural gas, has grown explosively. New and often illegal settlements and industrial plants have in many cases expanded into environmentally fragile areas that should have been protected as natural resources. Heavy traffic congestion and significant air pollution are major issues in many areas. Inefficiencies in collection and safe disposal of solid waste, including industrial waste, are turning into potential public health hazards. Illegal discharges by ships, port activities and industries are at the root of growing pollution of the waters of the Bosporus, the Black Sea and the Sea of Marmara. Istanbul s problems are exacerbated by its location in one of the world's most active earthquake zones adjacent to the North Anatolian fault line, a fault comparable to California s San Andreas Fault. Strong earthquakes are a periodic occurrence and throughout recorded history have struck the city repeatedly, causing severe damage and loss of life. As demonstrated by the 1999 Marmara earthquake, whose epicenter was only 60 km from Istanbul, a large proportion of Turkey s local infrastructure and real estate lack the necessary structural resistance and are highly vulnerable to earthquakes. Recent studies indicate

2 that the retrofitting of existing structures necessary to bring the earthquake preparedness of Istanbul to acceptable levels, together with other measures required for adequate disaster mitigation, are estimated to cost around US$ 100 billion in today s prices. 2. Objectives The objectives of the proposed project are to assist IMM in: (a) improving its environmental management, especially in the area of solid waste collection and disposal both on land and at sea; and (b) strengthening its municipal services and increasing its preparedness for expected large earthquakes by retrofitting key municipal facilities infrastructure. 3. Rationale for Bank Involvement On November 6, 2003 the World Bank s Board of Directors adopted the Country Assistance Strategy (CAS) for Turkey (Report No TU) that pursues four major objectives: (a) supporting sound macroeconomic management and governance; (b) promoting equitable human and social development; (c) creating a more attractive business climate; and (d) strengthening environmental management and disaster preparedness and mitigation capacity. The proposed IMIP supports these CAS objectives by focusing on: (i) critical environmental problems upgrading solid waste disposal facilities and safe disposal of waste; and (ii) strengthening disaster mitigation by improving key infrastructure and infrastructure services that will be critical when an earthquake strikes. 4. Description The IMIP would consist of the following four components: (i) Improvements in environmental management: a. Closure of illegal dump sites; b. Preparation of annual Business Plans for solid waste services; and c. Financing shipping waste collection and emergency response vessels. (ii) (iii) (iv) Strengthening of municipal services and infrastructure: a. Preparing a detailed risk assessment for all major municipal systems; b. Preparing a Municipal Infrastructure Risk Mitigation Plan; c. Retrofitting selected key buildings, fire stations and municipal infrastructure; and d. Providing emergency fire department equipment. Pilot urban transformation program: a. Pilot urban transformation feasibility studies; and b. Select priority investments associated with urban transformation in the most seismic vulnerable areas. Engineering services and audits: a. Design studies, tender documents, review of strengthening and other design, surveys and other studies; and b. External audits of project accounts.

3 5. Financing Source: ($m.) Borrower International Bank for Reconstruction and Development Total Implementation IMIP will be implemented from mid 2007 end 2012 under the direct responsibility of IMM. To that end IMM has agreed to establish a specific Project Management Team (PMT) within its Finance Department. The PMT will be responsible for procurement, disbursement and financial management, accounting, reporting, as well as technical supervision of project implementation and monitoring, evaluation of project results, and checking retrofit designs to ensure that they meet project criteria. To this end, the PMT will be staffed with qualified staff from the Finance Department itself as well as technical experts from relevant other departments of IMM and, on an as needed basis, representatives of the beneficiary municipal service companies. Possible needs for PMT staff with specific skills and qualifications that might not be available in IMM will be satisfied through the temporary employment of local consultants and/or the procurement of international expertise to be financed under the project. While the IMM PMT unit will be new to the Bank project implementation procedures, it should benefit from the experience of the ongoing ISMEP project coordinated by the Istanbul Project Coordination Unit (IPCU) located within the Istanbul Special Provincial Administration (ISPA). 7. Sustainability IMIP investments for environmental management improvement will be transferred upon completion to the municipal companies operating the respective services. These companies are financially viable and have adequate technical and financial resources to efficiently operate the assets created by IMIP. The earthquake retrofitting of infrastructure is a one-time investment. 8. Lessons Learned from Past Operations in the Country/Sector Implementation. World Bank experience in Turkey and worldwide has shown that municipal projects implemented directly by the beneficiary municipality or utility generally have more implementation problems than projects implemented by free-standing project implementation units having higher paid staff. However, for a municipality, utility or institution borrowing from the Bank, the most critical institutional long-term development objective is to strengthen the capacity of its staff and improve the performance of its operations, a goal that cannot be achieved through the use of free standing project implementation units. For this reason, IMM proposed, and the Bank concurred, to set up a project management team within IMM and to manage IMIP, to the maximum extent feasible, exclusively through IMM staff. Earthquake Risk of Istanbul. Given the location of Istanbul and the existing very high earthquake risk potential, it is essential for all investments to be designed to ensure the highest level of seismic safety. Minor earthquakes are frequent; the probabilities of a major earthquake affecting Istanbul in the next years are estimated at about 30-60%, respectively. Project Costs. Scope, costs and duration of retrofitting buildings and infrastructure are often difficult to determine ex-ante in a reliable fashion. Such operations are, therefore, inevitably subject to discovery of needs for additional works during execution and ensuing risks of cost overruns and implementation delays. For this reason, significant flexibility must be built into the implementation arrangements and procedures as well as in the legal agreements. This would provide the project management team from the

4 outset with the tools necessary to deal expeditiously and effectively with unexpected circumstances and needs. 9. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.01) [X] [ ] Natural Habitats (OP/BP 4.04) [ ] [X] Pest Management (OP 4.09) [ ] [X] Cultural Property (OPN 11.03, being revised as OP 4.11) [X] [ ] Involuntary Resettlement (OP/BP 4.12) [X] [] Indigenous Peoples (OP/BP 4.10) [ ] [X] Forests (OP/BP 4.36) [ ] [X] Safety of Dams (OP/BP 4.37) [ ] [X] Projects in Disputed Areas (OP/BP 7.60) * [ ] [X] Projects on International Waterways (OP/BP 7.50) [ ] [X ] Involuntary Resettlement (World Bank OP 4.12): The project does not trigger OP 4.12, Involuntary Resettlement, as all works anticipated to be funded by the project will take place on public land or within existing rights of way. None of these activities will entail any land acquisition, relocation of population, or result in restricting the access of individuals or communities to economic resources. Given the dynamic situation in the IMM, the results of plans or studies underway or to be undertaken, however, it is possible that the Municipality will request support for an investment that will require private land to be acquired or public land to be cleared. To enable the project to respond quickly and positively to such an eventuality, the IMM has prepared a Resettlement Policy Framework satisfactory to the Bank that will ensure compliance with OP There will be no physical movement of people. In addition prior review of all proposed urban transformation investments under Component C will be undertaken. 10. Policy Exceptions and Readiness International Waterways (World Bank OP 7.50): The Government of Turkey has no special regulations regarding projects on or affecting international waterways. Therefore, only World Bank safeguard policy OP 7.50 applies. However, no component of the project is either known or suspected to be located on an international waterway or utilizes international waters for withdrawal or discharge. Cultural Property (World Bank OP 11.03). The safeguard policy on Cultural Property is considered triggered since any retrofitting work in Istanbul has a reasonable likelihood of: (i) affecting listed cultural heritage sites, (ii) being in close proximity to such sites, and/or (iii) being located in a district under protection. The World Bank has in the past reviewed the Turkish regulations concerning interventions with regard to cultural property and found them to be satisfactory. 11. List of Factual Technical Documents Report on the Activities, Functions and Structure of Istanbul Metropolitan Planning and Design Center, Istanbul Metropolitan Municipality, 2006 * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties claims on the disputed areas

5 Report on Istanbul Province Environmental Plan, Istanbul Metropolitan Planning and Design Center, Istanbul May 2006 Zeytinburnu Urban Regeneration Pilot Project (Strategy and Action Plan), Istanbul Metropolitan Municipality Budgets of Istanbul Metropolitan Municipality, Istanbul Metropolitan Municipality Strategic Plan ( ) Financial Information of Istanbul Metropolitan Municipality, 2006 Remedial Actions in the Aftermath of the 1999 Turkey Earthquakes, E. Uckan, M.Erdik, U.Celep, N.Apaydin and N. Aydinoglu, Bogazici University, August 2003 Seismic Microzonation for Municipalities, Executive Summary, Ministry of Public Works and Settlement, DRM, February 2004 Earthquake Risk Assessment for Istanbul Metropolitan Area, Bosporus University, May 2002 The Study on A Disaster Prevention/Mitigation Basic Plan in Istanbul including Seismic Microzonation in the Republic of Turkey, Istanbul Metropolitan Municipality, JICA, December 2002 Istanbul Gas Distribution Company (IGDAS) Annual Report, 2005 Istanbul Sea Vessels Company (IDO) Annual Report 2005 Industrial Waste Feasibility Study, Gesselschaft fur Chemischen und Techniscen Umweltschuts mbh (Company for Chemical and Technical Environmental Protection,Ltd.), November 2005 Report on ISTAC, 2006 Information on Istanbul Solid Waste Sites, Contact point Contact: Seema Manghee Title: Sr. Infrastructure Specialist Tel: Washington Office (202) ; Turkey office (90-312) Smanghee@worldbank.org 13. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C Telephone: (202) Fax: (202) pic@worldbank.org Web:

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